Statement on Signing a Minority Business Enterprise Development Bill

July 13, 1983
I am today signing S. 273, a bill that would amend section 8(a) of the Small Business Act to
extend two pilot programs designed to assist minority business development. My approval of this
bill demonstrates this administration's continuing commitment to minority business.

S. 273 authorizes the President to select a Federal nondefense agency for a pilot program with the
Small Business Administration (SBA) that will direct procurement contracts to minority
businesses and thus assist their development. Under the program, SBA will have final authority in
selecting the procurements that would best assist the growth of particular minority
enterprises.

In addition, S. 273 revives an expired surety bond waiver pilot program and extends it through
September 30, 1985. Under this program, SBA would assume the functions and obligations
ordinarily performed by a commercial surety company.

The concept behind the 8(a) procurement pilot program is to test whether minority-owned
businesses can be advanced through the use of more technically sophisticated, higher volume, and
longer term contracts. I believe that this program can be an effective business development tool
for small minority enterprises. I will direct SBA and the designated agency to work cooperatively
so that this pilot program has a fair and adequate test.

This administration is dedicated to increasing the share of Federal procurement dollars which is
placed with minority business. This program can assist us in meeting our minority business
development goals as well as assist minority businesses in industries where minorities traditionally
have not participated.